Selected | East China, Yunnan, Chongqing and Sichuan cement prices slide; Zou Weibin: The cement industry has experienced winter, can spring be far behind?

2024-01-08 15:11:59

East China, Yunnan, Chongqing and Sichuan cement prices slide; Zou Weibin: The cement industry has experienced winter, can spring be far behind?

< Market Overview & gt;

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. East China: The actual transaction price of Jiangsu, Zhejiang, Shanghai and Anhui fell by 10-20 yuan/ton (1.1-1.5) ( click the title to view the full text). According to

the China Cement Market Data Center, cement prices in East China generally fell this week. The actual transaction price of cement in Jiangsu, Zhejiang, Shanghai and Anhui has fallen by about 10-20 yuan/ton, the price of cement in Shandong has fallen by about 20 yuan, and the quotation in Fujian is temporarily stable in the week.

2. How did the pattern of Yunnan cement price "high in the south and low in the north, high in the west and low in the east" come into being?

Several cement companies said that the market demand in 2023 had shrunk by about 20% compared with 2022, mainly due to the downturn of the real estate industry and the slow progress of major projects, and the price of cement was much lower than the same period in previous years. It is very common for Yunnan clinker production lines to build large ones in batches. The actual production capacity of Yunnan cement clinker is about 35% higher than the approved production capacity, which is an important reason for the aggravation of the contradiction between supply and demand in Yunnan market and the downturn of the market.

3. The price of cement in the main urban area of Chongqing fell

. At the beginning of the month, the leading enterprises in the main urban area successively lowered the price of cement by about 20-30 yuan/ton, while the quotation in other areas was temporarily stable.

4. From late

December to early January, the leading enterprises in Chengdu-Deyang-Mianyang region of Sichuan successively lowered the price of cement by about 10-20 yuan/ton.

& lt; Today's Focus & gt;

1. Talking about the Cold and Warm of Cement | Zou Weibin: The Cement Industry Has Experienced Winter, can Spring Be Far Behind? Zou Weibin, senior consultant and cement grinding expert of

China Cement Network, said that the situation of the whole cement industry in 2023 was indeed grim. Under such circumstances, many cement enterprises began to actively take some self-help measures, such as salary cuts, layoffs, switching to mortar and prefabricated buildings. The cement industry is facing the problems of declining market demand, increasing environmental pressure and overcapacity, but it still has broad prospects for development. Enterprises should actively respond to market changes, take measures such as technological transformation and expanding new fields to resolve the problem of overcapacity, and strengthen technological innovation and environmental protection management in order to achieve sustainable development.

2. Interpretation of Hubei peak staggering | Huaxin strictly organizes production

according to the approved production capacity. Recently, the Department of Economy and Information of Hubei Province and the Department of Ecology and Environment of Hubei Province jointly issued the Notice on the Normalization of Peak Staggering Production in the Cement Industry in 2024. "Notice" put forward that "all cement clinker production lines should organize production in strict accordance with the approved capacity and carry out peak staggering production", which refers to "overproduction behavior". It not only maintains the seriousness of the government's approval of capacity indicators, project establishment, environmental assessment and energy assessment, but also protects the enthusiasm of compliance production enterprises and promotes fair competition among enterprises.

3. Hubei: In 2024, cement enterprises shall organize production in strict accordance with the approved production capacity, and shall participate in peak-shifting production and implement differentiated management and control

. According to the requirements of the notice, all cement clinker production lines shall organize production in strict accordance with the approved production capacity and carry out peak-shifting production, and the minimum days of peak-shifting production shall not be less than 40 days. To implement differentiated management and control for peak staggering production of cement clinker production line in the whole province.

4. Green and low-carbon development! Six photovoltaic power generation projects of BBMG Jidong Cement have been successfully connected to the grid for power generation

. Recently, six photovoltaic power generation projects of BBMG Jidong Cement have been successfully connected to the grid for power generation. It is estimated that the total annual power generation will reach 17 million kWh, the total standard coal saving will be more than 5200 tons, and the total carbon dioxide emission reduction will be more than 14000 tons, creating a new business card for green development.

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Correlation

On November 21, the Western Construction (002302) issued a prospectus for issuing stocks to specific targets in 2021. The company plans to introduce Conch Cement as a strategic investor through this issue, and Conch Cement will subscribe for 183 million shares, accounting for 12.48% of the total equity after the issue, becoming the second largest shareholder. The purpose of this issue is to optimize the capital structure, supplement liquidity and repay bank loans, which is expected to bring the company an annual increase of 8.85 billion yuan in operating income and a total profit of 708 million yuan, up 38.71% and 78.23% respectively from 2023.